Dr. Ido Kalir, head of the specialization in Finance and Financial Markets in the Bachelor’s program in Business Administration at Ono Academic College, conducted a study evaluating the results of an individual who 10 years ago invested 100,000 shekels in the financial market versus someone who bought an apartment for the same sum. In the study, publicized in the Israeli financial newspaper, Globes, Kalir reported that 100,000 shekels invested 10 years ago in the Tel Aviv Stock Exchange 25 Index fund would now be worth 105,000 shekels, a yield of just 0.5% per year. In contrast, Kalir said, the same sum invested in Israeli real estate would have doubled its value.
Kalir believes that this situation is likely to continue in the future. He said, “In 2020, the Israeli birth rate stands at 3.07 children per family. With so many children and with such a tumultuous building policy, I believe real estate prices will continue to rise.”
The full article can be read at: https://www.globes.co.il/news/article.aspx?did=1001341642